Ministry of Defense cites national security in seeking Thua Thien Hue project be put on hold.
Minister and Head of the Office of the Government Nguyen Van Nen on December 1 confirmed that Thua Thien Hue province’s decision to cease construction at the World Shine - Hue Resort is legitimate.
Minister of Defense Phung Quang Thanh had previously sent a report to the government requesting the World Shine - Hue Resort project be stopped. The Ministry believed the project’s location poses a threat to national security. The government has confirmed receipt of the report and will ask the Prime Minister for a final decision.
World Shine Hong Kong Co. Ltd., through its Vietnam unit The Dieu Co., received an investment license for a 50-year term from Thua Thien Hue authorities in October 2013. Total capital for the project is around $250 million. According to the investment certificate, the 200-hectare retreat complex is designed to include a 450-room five-star hotel, a 2,000-seat international convention center, a five-storey block of 200 deluxe apartments, and 350 villas.
Provincial authorities in Thua Thien Hue decided to halt the Chinese-developed resort project after a debate on its sensitive location on Cua Khem Cape, where Hai Van Mountain meets the East Sea. The cape is also a border area between the province and the central city of Da Nang. According to Provincial Chairman Nguyen Van Cao, the projce was licensed in accordance with the law but he acknowledged there were mistakes made during the review process and that the Ministry of Defense was not consulted. Moreover, managers at the Chan May-Lang Co Economic Zone, who issued the investment certificate, did not fully cooperate with other agencies when doing so.
The management board of Economic Zone is now tasked with settling the issue with the project’s developer. Thua Thien Hue authorities also met with representatives from The Dieu Co. last week, and the developer agreed with the decision to stop implementing the project but no compensation request was mentioned.